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Unveiling the Power of Long-Term Investing: A Comprehensive Analysis of Historical Market Trends

In last month’s article, I addressed a common question… “Is now a good time to invest?” I referenced in that article that over the past 20+ years, investors could always find a reason to stay away from the markets. The reasons to avoid investing included events like the fallout of the Global Financial Crisis, the Dot-Com bubble, Trade Wars, the War on Terror, and even different biological concerns like the Ebola and Coronavirus epidemics. Yet, despite all of these events, the annualized return of the S&P 500 Total Return Index was about 7%. While I think that just that piece of information is powerful, it only captures one window of returns from 2000-2023. What about all the other years and combinations?